WK Dividend Type Payments
Although WK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Workiva Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Workiva Inc. Class A (WK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 33.54 |
84.66 |
84.01 |
-0.42 |
616K |
- |
4.7B |
WK Dividend-Like Income Using Covered Calls
With WK at 84.01, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield |
Annual Premium |
Cents/Day |
| 3% |
2.52 |
0.7 |
| 5% |
4.20 |
1.2 |
| 10% |
8.40 |
2.3 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
85.00 |
3.60 |
53 |
6.8 |
0.34 (0.4%) |
| Oct 17 |
100.00 |
4.20 |
236 |
1.8 |
15.34 (18.3%) |
| 5% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
85.00 |
3.60 |
53 |
6.8 |
0.34 (0.4%) |
| Oct 17 |
100.00 |
4.20 |
236 |
1.8 |
15.34 (18.3%) |
| 10% Yield On WK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
85.00 |
3.60 |
53 |
6.8 |
0.34 (0.4%) |
| Oct 17 |
85.00 |
10.20 |
236 |
4.3 |
0.34 (0.4%) |
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